This is a question we have been asked thousands of times. This normally happens when people have lots of equity in their home and are wanting to release some of that equity to pay for home improvements, repay some high interest rate personal credit, gift some money to children and whole host of other reasons. The problem is that most people are tied in to a certain product on their mortgage so that if they want to release some of the equity in the home, the lender will charge a penalty often in the thousands of pounds to break the terms of the mortgage and release the money. So how do you get access to your equity without paying these penalties? The answer is a rather simple one but one that most people don’t know exist. There are a host of banks that will lend you a second mortgage for the additional money you need and sit behind your main mortgage. This means you can borrow the extra money without having to pay any fees or penalties to your main mortgage lender. You may think that interest rates on this type of lending will be very high or with large fees which historically was true, however, the competition for these second mortgages is at an all time high and with interest rates as low as they have ever been, you can secure this type of lending at less than 4%. These second mortgages also do not require any solicitors which means that they can be arranged and funded within 2 weeks compared to a typical 8 weeks for a mortgage. Mortgage Magpie can introduce you to a specialist second mortgage Adviser that can get you the money you need at the lowest cost.
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